Page:United States Statutes at Large Volume 45 Part 1.djvu/892

 SEVENTIETH CONGRESS. SESS. I. Cii. 852. 1928 . (b) Partnership year embracing calendar y ears with different laws .-If a fisc al year of a partnership begins in one calendar year and ends in another calendar year, and the law applicable to the second calendar year is differe nt from the law applicab le to th e first calendar year, then (1) the rates for the calendar year during which such fiscal year begins shall apply to an amount of each partner's share of such p artne rship net i ncome (dete rmine d und er th e law appli - cable to such calendar year) equal to the proportion which the part of such fiscal year falling within such calendar year bears to the full fiscal year, and (2) the rates for the calendar year during which such fiscal year ends shall apply to an amount of each partner's share of such p artne rship net i ncome (dete rmine d und er th e law appli - cable to such calendar year) equal to the proportion which the part of such fiscal year falling within such calendar year bears to the full fiscal year. In such cases the part of such income subject to the rates in effect for the mos t recent calenda r year s hall be added to the oth er incom e of the taxp ayer sub ject to such rat es and t he resul ting amo unt shal l be placed in the lower brackets of the rate schedule applicable to such year, and the part of such income subject to the rates in effect for the next preceding calendar year shall be placed in the next higher brackets of the rate schedule applicable to such year. SEC. 183. COMPUTATION OF PARTNERSHIP INCOME. The net income of the partnership shall be computed in the same mann er and o n the sa me basis as in t he case of an ind ividual, except that the so-called " charitable contribution " de ductio n pro vided in section 23(n) shall not be allowed. SEC. 184. CR EDITS AGA INST NET INCO ME. The partner shall, for the purpose of the normal tax, be allowed as a credit against his net income, in addition to the credits allowed to him under section 25, his proportionate share of such amounts of dividends and interest specified in section 25 (a) and (b) as are received by the partnership. SEC. 185. EARNED INCOME. In the case of the members ofa partn ershi p the proper part of each share of the net income which consists of earned income shall be determined under rules and regulations to be prescribed by the Commissioner with the approval of the Secretary and shall be sepa- rately shown in the return of the partnership and shall be taxed to the member as provided in this Suppl ement. SEC. 186. CAPITAL NET GAINS AND LOSSES. In the case of the members of a p artne rship the proper part of each share of the net income which consists, respectively, of ordinary net income, capital net gain, or capital net loss, shall be determined unde r rul es and regu latio ns to be pr escri bed by the Commi ssione r with t he appro val of t he Secre tary, an d shall be separ ately sh own in the return of the partnership and shall be taxed to the member as provided in this Supplement, but at the rates and in the manner provided in section 101 (a) and (b), relating to capital net gains and loss es. 841 INCOME TAX Partnership year em- bracing calendar with different laws. Rate s for year in which fiscal year be- gins. In which fiscal year ends . Computation of rates. Partn ership incom e. Computed same as individual. Charitable deduction not allowed. Ante, p. 801. Credits against net income. Additi onal, from partnership exemp- ti ons . Ante, pp. 805, 800 . Earned income. Determ ination of partner's. Cap ital net gain s and losses. Application of, to income of partners. Ante, p. 811.

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